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2013: Individual Life-Annuity State Environment Annual

Conning’s Individual Life-Annuity State Environment Annual provides a detailed look at the premium growth outlook in each of the states (and the District of Columbia). The review focuses on the unique characteristics of each state. Historical performance, economic and demographic trends are viewed, with an eye on the key drivers of state premium growth and profitability environment.

1. Introduction

2. Methodology

3. National Line-of-Business Outlook

Individual Life Outlook

Individual Life Product Outlook

Individual Annuity Outlook

Individual Annuity Product Outlook

4. Individual State Environmental Analyses

Appendix: Company Market Shares by State

Introduction

Conning’s Individual Life-Annuity State Environment Annual provides a detailed look at the premium and distribution in each of the states (and the District of Columbia). The review focuses on the unique characteristics of each state. Historical performance as well as economic and demographic trends are viewed, with an eye on the key drivers of state sales growth.

It is critical to the planning function to understand how and why state insurance market performance varies. A company’s plan should include a sense of expectations for profitable growth in a given territory or for a given line of business and product. Developing informed assumptions for an assessment of growth expectations is a critical element of the plan. Monitoring performance involves not only recording premium growth, but also monitoring performance of the underlying assumptions. Understanding variances in assumptions is critical to developing a more robust plan.

Not all states were affected in similar fashion by the recent recession, and not all states are emerging equally. The recession has made an understanding of the underlying differences among the state insurance environments a fundamental element of success. A detailed understanding of state differences should guide strategy as the economy recovers.

This annual review focuses on growth of the 51 individual life and individual annuity insurance markets. Chapter 2 summarizes our methodology, which is linked to our Life-Annuity Forecast & Analysis by Line of Business product. Because of the importance of the national forecast to our state outlooks, Chapter 3 provides a summary of information on individual life and individual annuity products from Conning’s national outlook (as of midyear 2013). Chapter 4 then provides the 51 insurance market environmental summaries, along with Conning’s line-of-business premium growth rank.

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